The Billionaire Takeover: How 50 Families are Hijacking the 2024 Elections
As the 2024 elections approach, the shadow of a tiny, ultra-wealthy elite grows ever larger. According to a new report by Americans for Tax Fairness1, just 50 billionaire families have already funneled a staggering $600 million into the political process, with the final tally expected to soar even higher as election day nears.
A Stark Imbalance
To understand the sheer magnitude of this influence, consider this: these 50 families make up a mere 0.000000002% of the American population. Yet their combined net worth tops $1 trillion2. The $600 million they've injected into the election system amounts to just 0.06% of their wealth—akin to an average American household donating roughly $100. This means that these billionaire families have the political spending power of over six million ordinary American families.
Where the Money Goes
The ATF report highlights the sheer scale of this influence. Over two-thirds (69%) of the $600 million donated by these families has supported Republican candidates and conservative causes, while only 23% has gone to Democratic candidates. The remaining 8% of contributions remain nonpartisan. This skewed distribution underscores the strategic investment these families are making to safeguard their wealth from progressive taxation efforts.
So, where is all this money going? The breakdown is both revealing and alarming:
Republican Party: 69%
Democratic Party: 23%
RFK Jr.: 4%
Pro-crypto politicians: 2%
Pro-Israel politicians: 2%
The largest individual donor in this cycle is Jeff Yass3, a billionaire stock trader and Trump ally from Pennsylvania, who has contributed more than $70 million, mainly to the far-right Club for Growth and the hard-right House Freedom Caucus.
The Usual Suspects
Other significant donors include hedge fund manager Ken Griffin4, who has focused his efforts on supporting David McCormick, a fellow hedge fund manager challenging Senator Bob Casey in Pennsylvania, and Maryland Governor Larry Hogan, who is running for his state's open Senate seat. Among the top ten billionaire families, the Kochs, Ricketts5, Mellons, and Waltons stand out, having collectively contributed over half of the total donations.
The Koch family, for instance, has funneled significant funds through Americans for Prosperity Action, a super PAC dedicated to opposing policies like President Obama’s Affordable Care Act, which included taxes on investment income.
The Waltons, heirs to the Walmart fortune, are another prime example of strategic political spending. Their collective wealth has skyrocketed to $267 billion, almost 50 times more than it was 40 years ago. They have mastered the use of tax loopholes, such as the "Walton GRAT" (Grantor Retained Annuity Trust), to shield their wealth from estate and gift taxes.
The Simons family, with the late Jim Simons at its helm, stands out as the largest supporter of Democratic candidates among billionaire clans, funneling donations primarily into super PACs linked to Democratic congressional leadership. Despite their alignment with Democratic values, their political contributions highlight a broader trend among billionaires to influence policy for personal and financial interests.
Similarly, The Hoffman family, led by LinkedIn co-founder Reid Hoffman, has directed substantial funds toward anti-Trump GOP super PACs and pro-Biden groups, emphasizing support for moderate Congressional Democrats to navigate the polarized political landscape.
On the other hand, Paul Singer, head of Elliott Management, channels millions into Republican candidates and causes, often targeting progressive candidates to maintain a business-friendly environment, exemplifying how billionaires leverage financial power in both corporate and political spheres.
Michael Bloomberg, former New York City mayor and founder of Bloomberg LP, uses his considerable wealth to support Democratic candidates and progressive causes, particularly in gun control and climate change, showcasing a strategy of influencing policy for public health and environmental sustainability.
Meanwhile, media mogul Haim Saban and his family focus their substantial donations on supporting Democratic candidates who champion pro-Israel policies and progressive domestic issues, demonstrating the significant impact of media and entertainment wealth on political activities.
The Erosion of Democracy
This tiny group of billionaires wields an influence that fundamentally undermines democratic governance. Their ability to pump vast sums into the political arena grants them direct access to the corridors of power, sidelining the voices of millions of ordinary Americans.
The Supreme Court's decision in Citizens United v. FEC6, which equated money with free speech, has only exacerbated this issue, allowing the wealthiest to drown out the voices of the many. The concentration of political power in the hands of a few oligarchs underscores the dysfunction in our democracy.
The implications of this financial clout are profound. The 2017 Trump-GOP tax law, which significantly reduced corporate tax rates, is a case in point. This legislation disproportionately benefited the wealthiest Americans, including billionaire families who own a substantial portion of publicly traded stock. Research indicates that about half of the benefits from corporate tax cuts accrue to shareholders, further entrenching economic inequality.
President Biden has pledged to reverse these tax cuts for the wealthy and implement more rigorous taxation on investment income exceeding $1 million. This stance is a direct threat to the financial interests of billionaire families, motivating their substantial political investments to support candidates who oppose such reforms.
To curb the disproportionate influence of billionaire families on American politics, comprehensive reforms are necessary. Strengthening campaign finance laws to limit unlimited contributions and closing tax loopholes that benefit the ultra-wealthy are critical steps.
Additionally, implementing more effective taxation on unrealized capital gains and intergenerational wealth transfers can help address the systemic inequalities perpetuated by current policies.
In the face of overwhelming financial influence at the federal level, many believe that real change must start locally. Local elections provide a more accessible battleground where grassroots movements can effectively challenge entrenched interests. Addressing issues like housing and zoning laws often requires local action, which lies beyond the reach of federal intervention.
While local political engagement offers a glimmer of hope, broader systemic changes are necessary to reclaim democracy from the grip of oligarchic power. The current trajectory undermines the principles of equal representation and threatens the very fabric of our democratic society.
The unprecedented political spending by America’s richest families is a stark reminder of the power imbalance in our system. As we approach the 2024 elections, the need for reform has never been more urgent.
Let’s ensure that democracy remains for the many, not the few.
Americans for Tax Fairness. “The Billionaire Family Business: 50 Billionaire Clans Have Already Spent Over $600 Million on the 2024 Elections, Mostly to Preserve Their Fortunes” [https://americansfortaxfairness.org/billionaire-family-business-50-billionaire-clans-already-spent-600-million-2024-elections-mostly-preserve-fortunes/]
Forbes. “The Net Worth of America’s Richest Families.” [https://www.forbes.com/families/list/#tab:overall]
Jeffrey Yass, a high-frequency Wall Street trader, and his family have significantly supported right-wing groups, including the Club for Growth and the House Freedom Caucus. The Yass family's political contributions illustrate the intersection of financial acumen and political influence, with substantial sums directed towards candidates and causes that oppose progressive taxation and regulation.
Ken Griffin, head of the hedge fund Citadel, is another prominent Republican donor. His family's contributions have supported Senate candidates and conservative super PACs, emphasizing a commitment to maintaining favorable conditions for high-net-worth individuals and their enterprises .
Joe Ricketts, founder of TD Ameritrade, and his family have been significant political donors, particularly within the Republican Party. They have contributed to super PACs that support conservative candidates and causes, including efforts to counter Democratic influence in Congress. The family's ownership of the Chicago Cubs further amplifies their public and political profile .
Citizens United Explained: [https://www.brennancenter.org/our-work/research-reports/citizens-united-explained?ref=hbcompass.io]
There is only one party in the USA , the war party. The rest of it is just divide and conquer tactics to delude the US citizens into thinking there is a difference and their vote matters.
…we are CORPORATE OLIGARCHY and it’s been for a while, two party system is one step to autocracy and no choice at all